SCP AND CARBON LABELING: A GLOBAL OVERVIEW

Dr. Stefanos Fotiou

United Nations Environment Programme

Presentation contents2

SCP, Life-cycle and the

consumption side

Labelling, sustainable procurement

and trade

Challenges and opportunites

SCP: Life-cycle and

consumption3

What is SCP4

The creation and use of services and related products, which respond to basic needs and

bring a better quality of life while minimising the use of natural

resources and toxic materials as well as the emissions of waste

and pollutants over the life cycle of the service or product so as not to jeopardise the needs of

future generation

What is SCP5

The creation and use of services and related products, which respond to basic needs and

bring a better quality of life whileminimising the use of natural

resources and toxic materials as well as the emissions of waste

and pollutants over the life cycle of the service or product so as not to jeopardise the needs of

future generation

Life-cycle approach6

SCP holistic approach7

The consumption conflict8

I’d like to end poverty, stop violence and racism,and get rid of pollution.

Everyone should be equal.

I want to dress in the nicest clothes,drive a great car, talk on the latest

mobile phone, and use my brand new DVD

Government conflict9

We want to promote environmental conservation and social justice. Give

priority to local products. Be Green!

We have limited financial resources. We must be efficient. We need to buy more for less.

It is about choices10

How we choose?

Classical consumption theory (Neoclassical economics)

• Rational, utility-seeking people who try to maximize

• Same information is available to all consumers

An alternative view (Veblen; Institutional economics)

• People are irrational creatures who chase after social statuseven if this is more costly

• People do not just consume things, they consume symbols

More on the alternative view11

People attempt to mimic the more

“respected” (visible) members of their group in order to

gain more status

Consumption as a symbolic act, through which

people generate meaning and

express identity

Where is the opportunity?12

Consumers’ behaviour and

Education

Market approaches

and tools

Policies Regulations

Promote sustainability as a mainstream identity of consumers’ choices

Labelling, SPP, Trade13

Labelling14

• Eco-labelling is an important SCP element – interfacebetween production and consumption patterns

Addressing the needs of developing countries:• Information: access to coherent, credible and clear

information about eco-labelling programs, requirements and markets

• Capacity: comprehensive, coordinated and needs-based support to develop sustainable enterprises

• Policy framework: integration in supportive policy framework

• Development of internationally accepted principles for design, development and operation of labels and standards to create greater cooperation and harmonization

Key-characteristics15

Carbon standards, labels and regulations can be…

Based on design Based on performance

Defining products Defining processes

Mandatory Voluntary

Public Private

Sustainable Public Procurement16

“Sustainable Procurement is a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment”

International Task force on SPP

Trade 17

The greatest growth potential for environmental goods (EGs) is to be found in developing countries.

China and Brazil in particular have focused on the production and export of EGs as a priority, rapidly becoming market leaders in many areas such as renewable energy.

Combined with increasing environmental awareness internationally, these trends are creating new and dynamic opportunities for trade in EGs

How they all connected18

Trade

SPP

Labels

• Creating opportunities for economic growth on the basis of low carbon goods and services

• Government leading by example. Upscaling and mainstreaming low carbon goods and services

• Ensuring the credibility of producer’s claims on the low carbon aspect of the goods and services

Challenges and opportunities19

Opportunities20

Carbon labelling is good for

businesses

The potential of

international trade is huge

The trend towards SPP

Carbon labelling can

helps to increase

GDP

Challenges21

Carbon labelling is mainly on a

infant state in most countries

The current global financial

uncertainty

Too many tools and too many labels and so little coordination

Global trade agreements might be an

obstacle

Concerns22

Lack of transparency

Market access impacts of the proliferation of

private standards

Non-neutrality of CFP

methodologies

Confusion of consumers created by

multiple labeling schemes

Cost of conformity

assessment

Framing better solutions23

Carbon labels are part of the solution

An integrated solution needs additional tools

“Systems’ innovation” philosophy24

Changes to consumption and lifestyle habits, urban form,

transportation modes, energy production, and economic

structure

Technological improvements that permit efficiency gains to

be achieved without impinging on nutritional

budgets or quality of life in developing countries

Massive investments in infrastructure, skills and

institutions and governance capacity supporting

sustainable development

Strengthening existing fiscal and financial instruments for

creating incentives for resource efficiency

interventions

Conditions

With businesses and consumers25

Strategies Practices Investments

Natural

Resources:

Development

assets

Change of BAUMobilising

Financial

Capital

Behavioral Change of

Consumption Styles

And mainstreaming26

Integrate an idea/ theme into an entity (institution or process) to

change the nature of that entity’s culture and practices

UNEP work27

Regio

nal/glo

bal

leve

l

• Provide training to experts in charge of supporting governments to develop and implement SPP and eco-label policies

• Raise the awareness of policy makers regarding the importance and need for a rapid move to SPP and eco-labels

• Explore and discuss modalities of implementation of SPP and eco-labels in Asian countries

• New project on SPP and Ecolabeling (regional and national level implementation)

UNEP work28

Co

un

try le

ve

l • Seminars on SPP and eco-labels

• Provide support for developing SPP policies and eco-label frameworks

• Link the work of SPP with eco-labelling and with the work on Education for Sustainable Consumption

• Enabling developing countries to seize eco-label opportunities through capacity building and technical assistance for industries and governments in developing economies

UNEP work29

Co

nsu

mer/

ind

ustr

y

leve

l

• UNEP Carbon calculator

• Education for sustainable consumption

• Global and regional analysis of sustainable lifestyles

• Sector based initiatives (e.g. tourism, buildings and construction) to focus on the potential of very important products/services

Final notes30

1. Very big need for mutual recognition and acceptance

of carbon labels in sub-regional at least level

2. Governments’ Role –buying ‘green’: leading by

example will definitely accelerate in promoting

Carbon labels

3. A comprehensive institutional framework at

the country level with regional coordination is

definitely needed to mainstream carbon labeling

Dr. Stefanos Fotiou

United Nations Environment Programme

@stefanosfotiou

Thank you!